What can a realtor not tell you?

A realtor is legally and ethically restricted from disclosing certain types of information to clients. These limitations primarily exist to prevent discrimination, avoid steering clients based on protected characteristics, and ensure that buyers and sellers receive objective assistance rather than subjective opinions or unqualified advice.

Realtors operate under strict guidelines, most notably the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, sex, national origin, familial status, and disability. This act significantly shapes what real estate professionals can and cannot say.

Prohibited Disclosures: Preventing Steering and Protecting Fair Housing

Realtors must navigate conversations carefully to avoid any statements that could be construed as discriminatory or as steering clients towards or away from certain neighborhoods based on protected characteristics.

• Discriminatory Information and Steering:
  Realtors cannot provide opinions or information that could be interpreted as guiding clients based on demographics. This includes comments about:

  • The racial, religious, or ethnic composition of a neighborhood.
  • Whether a neighborhood is "good" or "bad" for certain types of families (e.g., "This area has many families with kids," implying it's only suitable for them).
  • The presence or absence of specific groups of people.

• Subjective Opinions and Guarantees:
  A realtor's role is to facilitate transactions, not to offer personal opinions or guarantees that fall outside their professional scope. They cannot tell you:

  • Neighborhood Safety: Whether a neighborhood is "safe" or "unsafe." Safety is subjective and statistics can change.
  • School Quality: If local schools are "good" or "bad" schools. School performance is complex and individual needs vary.
  • Income Composition: The "income composition in the area." Disclosing this could lead to discriminatory practices.
  • Future Property Value: They cannot guarantee future appreciation, market trends, or that a property is a "good investment."
  • Quality of Property Components: While they must disclose known material defects, they are not qualified home inspectors. They cannot offer expert opinions on structural integrity, potential mold issues, or the condition of appliances, plumbing, or electrical systems.
  • Stigmatized Properties: Depending on state law, realtors may not be required (or even permitted, in some cases) to disclose non-material facts about a property, such as if a death occurred there, if it's rumored to be haunted, or if previous residents had a particular illness. Buyers interested in such information should inquire directly and research state-specific disclosure laws.

• Confidential Information:
  Realtors are bound by confidentiality to their clients. They generally cannot disclose:

  • The true motivation of a seller or buyer (unless explicitly authorized by their client).
  • Other buyers' offers or financial details during negotiations.
  • Sensitive personal information about their clients or other parties involved in a transaction.

• Information Requiring Expert Opinion:
  Real estate agents are not licensed professionals in other fields. Therefore, they cannot provide:

  • Legal Advice: This includes advice on zoning laws, property line disputes, complex contract interpretations, or legal implications of purchasing a property. They will recommend consulting a real estate attorney.
  • Tax Advice: Information on property taxes is available, but they cannot advise on the tax implications of buying or selling a home. A tax professional should be consulted.
  • Environmental Assessments: While they must disclose known environmental hazards (like lead paint or asbestos) as required by law, they cannot perform environmental inspections or offer expert opinions on issues like radon levels or soil contamination. They will advise buyers to get professional inspections.

What a Realtor Can Do

While a realtor cannot provide subjective opinions or information that could be discriminatory, they can guide you to reliable, objective public sources where you can find this information yourself. This empowers you, as the buyer or seller, to make informed decisions based on facts rather than biased opinions.

• For Crime Statistics: They can direct you to local police department websites or reputable third-party crime mapping services.
• For School Information: They can point you towards official school district websites, state education department reports, or independent school rating platforms.
• For Neighborhood Demographics: They can suggest consulting U.S. Census Bureau data or other government demographic resources.
• For Property Condition: They will strongly recommend engaging licensed home inspectors, appraisers, and other specialists (e.g., HVAC technicians, plumbers, electricians) to assess the property's condition thoroughly.

Quick Reference: Realtor Disclosure Limitations

To simplify, here's a quick overview of what realtors are typically prohibited from telling you directly:

Realtors are valuable resources for navigating the complex real estate market, but it's crucial to understand the boundaries of their professional duties and what information falls outside their purview.